Dangote lists refinery shares in March, supplies petrol in August.
Alhaji Aliko Dangote, President and CEO of Dangote Industries Limited, announced that the Dangote Petroleum Refinery will be listed on the Nigerian Exchange by the end of March 2025. This comes as the refinery delays the supply of Premium Motor Spirit (PMS) to August 2024, shifting from the previously scheduled date in July.
Dangote disclosed this during a tour of the refinery and Dangote Fertilizer plants in Ibeji-Lekki, Lagos, highlighting the resolution of crude oil supply issues with the help of the Nigerian National Petroleum Company Limited (NNPC) and the Federal Government. The refinery is set to roll out petrol by August 2024, having resolved its crude oil supply issues.
The NNPC owns a 7.2% stake in the Dangote Refinery, contrary to the widely publicized 20%. This reduction is due to the NNPC’s inability to meet its financial obligations for the 20% stake.
Recently, Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, accused international oil companies (IOCs) of frustrating the refinery’s efforts to buy local crude, leading to increased costs due to the need to import crude from distant countries like the US.
However, with the crude crisis resolved, Dangote assured Nigerians of steady supply and reduced prices. The refinery is expected to commence gasoline production in July, with sales starting in August, aiming to reach a production capacity of 650,000 barrels per day by the first quarter of 2025. The annual revenue from the refinery is projected to exceed $26 billion.
The refinery features dedicated loading gantries with 86 loading bays, marine facilities for offtake of crude and loading of petroleum products, a 900-kilo tonnes per annum polypropylene plant, and substantial storage capacity.
Dangote also announced plans to list the refinery and fertilizer plants on the Nigerian Exchange by Q1 2025, aiming to expand its investor base and unlock further value for shareholders. The company is also constructing rice mills with a 1-million-tonne capacity, with the Jigawa plant expected to be commissioned soon.
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The Dangote Fertilizer plant is set to resume production in two weeks, addressing high demand from Nigeria and the rest of Africa. The plant has a 3 million tonnes per annum capacity and primarily exports to Sub-Saharan Africa, South America, the United States, and Europe.
Aliko Dangote projected that the company’s revenue would grow to about $30 billion in the coming years, significantly increasing the group’s revenue from hard currencies.
Additionally, the Dangote Group plans to expand its cement capacity by adding 9 million tonnes in Nigeria and Cote d’Ivoire. The Federal Government and crude oil producers in Nigeria have committed to ensuring a sustainable supply of crude oil to Dangote and other local refineries under a market-determined pricing system. This commitment aims to prevent local refineries from being starved of feedstock, promoting energy security and boosting domestic refining capacity.
